Integrated Logistics for DEP/GARD Case Study

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Integrated Logistics for DEP/GARD Case Study
-Tin Yeung Ma
-2/27/2014

Tom Lippet, sales agent for DEP, feels the challenge which time the successor of Mike O’Leary, Richard Binish, becomes the recently made known purchasing agent at GARD who plans to put in order the product line in the nearest three years. His plan to narrow the service window for suppliers from the creative 5 days to 3 days in the next three years to the eventually 1 sunshine window forces Tom to consider ways that be possible to increase the performance and service of their concourse to win the contracts in the events to come.

Solutions for DEP
1) Diagram attached the Left shows the DEP/GARD minister chain.
Value adding stages are:
- The inbound removal from compound suppliers
- The manufacturing and packaging progress
- The outbound transportation to GARD
Non-value adding stages are:
- The compound record sitting in DEP (7-day give)
- The order transmission time wasted by receiving and handling orders manually - The experienced product staying in the warehouse

2)

Order Transmission, Processing, Selection
Order Transportation
Customer Delivery
Total
Unit
Min Performance Cycle
6
3
0
9
days
Max Performance Cycle
8
6
6
20
days

The least quantity performance cycle for the supply trammel is 9 days, whereas the greatest performance cycle is 20 days.

3) The achievement cycle can be improved through the application of the 25 percent and 15 percent suppliers. But on this account that DEP used a bidding system that emphasized up~ the body price, by giving out more proportions of the unprepared materials to the 25% and 15% suppliers, the average variable cost per unit will have ~ing higher for each compound. However, choosing 25% and 15% suppliers who has a comparatively higher fill rate can increase the trustworthiness of inventory availability and reduce the possibility of shortages. Which in turn way that DEP can lower the 7-promised time supply of each compound to a 6-set time or even 5-day supply depending ~ward the reliability of the supplier. By doing such, the inventory...

Integrated Logistics for DEP/GARD Case Study

-Tin Yeung Ma

-2/27/2014

Tom Lippet, sales figurative for DEP, feels the challenge at the time that the successor of Mike

O’Leary, Richard Binish, becomes the of recent origin purchasing agent at GARD who plans to condition the

product line in the nearest three years. His plan to restrict the service window for suppliers from the

primitive 5 days to 3 days in the nearest three years to the eventually 1 generation window forces Tom to

consider ways that be able to increase the performance and service of their congregation to win the

contracts in the events to come.

Solutions for DEP

Continues for 4 to a greater degree pages »

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